With the changing environment of taxes in the country, employers and employees are often confused about how much they have to contribute to the Social Security System (SSS). However, to make it easier, the SSS Philippines has created a table system to figure out monthly contributions. This table system is known as SSS contribution tables.
Following are the SSS contribution tables 2024 for employers, employees, HE workers, self-employed, Land-Based OFW, and voluntary workers.
SSS Contribution Table for Employers and Employees
Recently, in January 2024, the Philippines government announced amendments in the SSS contributions or social security numbers. Currently, there is a notable increase in the monthly salary credits and the total contributions by employers and employees. Here is a brief explanation of this announcement.
- The first amendment was in regards to the MSC or maximum monthly salary credit, which has been lifted up to PHP 29,750. Please note that this is the maximum salary amount and if it exceeds this amount, your contributions will also increase depending on the maximum range.
- The second change according to the announcement was in accordance with the minimum salary credit, which is set to PHP 4,250. This means that if your salary is less than this amount of PHP 3,000, the contribution rate will be influenced by this.
- For employees and employers, the SSS contribution will also include the mandatory provident fund.
Here is a complete breakdown of the SSS contributions for employers and employees for 2024. To understand it better, first focus on the compensation range and the salary credits. Finally, look at the last column that gives you the total compensation, depending on your credits (employers and employees).
It is important to note that the table does not represent the exact benefits and contributions owed to the employees and employers. Instead, it is a general guide to help employers and employees understand their contributions and plan to pay them accordingly.
Difference Between Employers and Employees Contribution Table
If we look at the SSS contribution table given above, it is divided into two parts, one for the employee’s contribution and the other for the employer’s contribution. For the most part, the employee contribution table indicates the maximum and minimum credit salary and their respective contributions whereas the employer contribution outlines the minimum and maximum credit salaries and the respective monthly contributions for each bracket.
Employee’s Contribution
If we talk about the employee’s SSS contributions, they are based on the monthly salary credit made by the person. To calculate the exact employee contribution, you can use the following formula.
Monthly SSS Contribution = (Employee Salary x Contribution Rate) + EC Contribution
Now, let us demonstrate the employee’s contribution through an example. Assume that an employee has a monthly salary of PHP 30,000 and comes under a contribution rate of 5.5%. Here is how we calculate it.
Monthly SSS contribution = (PHP 30,000 x 5.5%) + 100 PHP = 1650 PHP + 100 PHP = 1750 PHP.
That said, please note that the employer is also required to pay the contribution to the employee’s SSS payment. Hence, the total SSS contribution for employees would be the sum of both the employer’s and employee’s contribution.
Employer’s Contribution
Employer’s contributions are calculated using the same above-mentioned formula. However, please note that the set of contribution rates applied to the employer’s compensation. The formula for the employer’s contribution table would be given as,
Employer’s Monthly SSS Contribution = Employee’s Monthly Salary x Employer’s Contribution Rate
Anyone with a monthly credit salary above PHP 5000 will have to pay contributions, determined by the above-mentioned formula. The calculations are based on the employee’s salary and the dedicated employer’s contribution rate to the salary. According to the law, employers have to make contributions on behalf of their employees and any refusal can result in heavy penalties.
Household Employer HE and Kasambahay Employee HE
In the Philippines, the household employer or kasambahay is a term popularly used for house help or any person who performs domestic or household services; however, the condition is that they must receive compensation or salary for these services. In contrast, the household employer is the person who is on the receiving end of these services. The spouse of a person who is paying the salary is also considered the household employer.
Here is a table showcasing the compensation and salary range of the household employees and their respective contributions. If you are not able to understand it, first look at the salary range and locate your compensation range. After this, look at the HR and HE columns indicating the employers and employees, respectively, and the last column indicating total contributions.
In case the compensation range is below PHP 5000, the household employees are not required to pay the contributions. Some terms on the table are given as,
- HR – Household Employer Contributions
- HE – Household Employee Contributions
- EC refers to the Employees Compensation
SSS Contribution for Land-Based OFW (Overseas Filipino Workers) Members
OFW refers to an individual who has full or partial Filipino ancestry yet they are living or working outside the country. Here is an updated version of the SSS contribution table for overseas Filipino workers. Please note that this table is only applicable to land-based and sea-based overseas Filipino workers.
Moreover, the employer’s share of the contributions shall be paid by the OFW employment agency (applicable to sea-based workers). However, in the case of land-based Filipino workers, the member will pay the entire contribution payment. According to the latest contribution table, the minimum compensation rate is PHP 8,250 whereas the maximum compensation is set up to PHP 29,750.
Please note that the contribution amount also includes the mandatory provident fund payment on a salary up to PHP 1,400. Here is a table showcasing the SSS contributions for land-based OFWs. All the relevant details are given in the compensation and total contribution columns.
If you are a land-based OFW member and have already paid the contributions for the upcoming months, the recent contribution schedule will be as follows.
- Any individual with an advanced payment of PHP 8,000 (minimum) will settle on the underpayment which will be PHP 80 to sustain the contributions at the minimum monthly salary credit. Otherwise, advanced payments will be considered ineffective contributions.
- Individuals with advanced payments at a monthly credit salary which is less than PHP 8,000 may decide to pay the increase in the already paid contributions to sustain the status at the same monthly credit salary. Otherwise, this payment will be posted at the lower monthly salary credit.
SSS Voluntary Contribution Table 2024
The salaried individuals who fall under the category of voluntary membership are considered SSS-separated members. Simply put, these individuals are either self-employed or previously employed but no longer intend to continue the payments for SSS premiums. Moreover, the non-working spouses of these individuals also come under this membership category.
According to the recent membership, the SSS contributions to voluntary members and their non-working spouses are given in this table. It shows the minimum compensation set at PHP 4,250 and their total contribution of PHP 560. Also, please note that these individuals will also have to pay the mandatory provident fund, which is deemed at PHP 1400.
Please note that the SSS contributions for the non-working spouses are determined by 50% of the monthly credit salary of the working spouse. If you have already paid your contribution in advance during January of 2023, the contribution schedule will be as follows.
- Individuals with an advanced payment at the minimum monthly credit salary of PHP 3,000 shall have an underpayment of PHP 170 to sustain their contributions of the new minimum monthly salary credit of PHP 4,000. Otherwise, advanced payments will be deemed ineffective contributions.
- Individuals with advanced payments on the monthly minimum credit of PHP 3,000 may decide to pay on the corresponding increase to sustain their status of paid on the monthly salary credit. Otherwise, these advanced payments will be applied at the lower monthly salary credit.
SSS Contribution for Self-Employed Members
According to the latest SSS contribution announcement, self-employed SSS members are also required to make contributions. This table showcases the new contribution amounts, depending on the salary they receive on a monthly basis. For the current year 2024, the SSS contribution table for self-employed individuals has the lowest salary amount set at PHP 4,250 whereas the maximum compensation range has been lifted up to PHP 29,750.
Moreover, the recent SSS contributions also included the mandatory provident fund. Check out your monthly credit salary and respective contribution. Please notice that self-employed individuals have to pay the entire amount, unlike the employer and employee status category where each agency has to pay a shared payment amount.
If you have already paid the contributions in advance during 2023, the revised schedule for contributions in compliance with the upcoming increase will be as follows.
- Individuals with advanced payments at the minimum monthly salary credit of PHP 3,000 will settle the underpayment to PHP 170 to sustain the posting of contributions set for the new minimum monthly salary credit of PHP 4,000. Or else, these payments will be considered ineffective contributions.
- Individuals with an advanced payment at the monthly salary credit other than the previous minimum monthly salary credit of PHP 300 may decide to pay the corresponding increase on the contributions at the same monthly salary credit.
How to Pay Contributions?
Now the question is, how can you file and pay these contributions? Well, according to law, all employers and employees are required to fulfill the SSS funds on a monthly basis. Here are some things you need to consider regarding the time period of SSS contributions.
- Employers must submit their SSS contributions within 15 days of every month.
- Employees must submit their contributions within 10 days of every month.
- If you are self-employed, you must make payments by the last day of the subsequent month or the quarter.
- Informal members of the economy like fisherfolks and farmers enjoy the flexibility to pay contributions at any time throughout the year without any restriction.
Usually, the payments are required to be made directly to the SSS or at the authorized banks and financial institutions. That said, it is extremely important to keep track of timely contributions made by individual members or employers. Not complying with the rules can result in a heavy penalty to the party concerned.
How to calculate the employer’s SSS monthly contributions?
The formula to calculate the employer’s SSS monthly contribution is (Employee Salary x Contribution Rate) + EC Contribution.
Can I stop paying SSS after 10 years?
Once you become an SSS member, you cannot withdraw the membership. Even when you stop paying the monthly contributions, the previous contributions cannot be refunded.
How much is the maximum monthly SSS contribution for overseas Filipino workers?
For overseas Filipino workers, the compensation range is below PHP 8,250 and PHO 29,750. For this, the contribution ranges from PHP 1120 to PHP 4200 on a monthly basis.
Finally, I hope after taking a quick look at these tables, you are better equipped to evaluate your monthly SSS contributions depending on credit salary. You can also use the formula to determine the exact contribution amounts.