NEW! SSS Contribution Table 2019 (With Computations!)
Here’s the latest version of the SSS Monthly Contribution Table 2019, which will be used to compute the monthly premiums to be paid by all Social Security System (SSS) members, including new required members OFW and kasambahay, starting April 2019.
With the approval by Congress last year of the new SSS Charter of 2018 or Republic Act 11199, the SSS contribution table has also significantly changed, showing higher Monthly Salary Credit (MSC) and, consequently, higher monthly contributions from SSS members as well.
What’s new in the 2019 SSS Tables?
Under the new charter, SSS members are now categorized into three, with varying Monthly Salary Credit (MSC) and monthly contributions depending on the category in which they belong:
- Employed, Self-Employed, Voluntary Member, and Non-Working Spouse;
- Household Employers and Kasambahay; and
- Overseas Filipino Workers (OFW).
The new MSC and revised employee and employer contribution for each member category are shown in the updated SSS contribution tables which you can find below.
How much is the new Monthly Salary Credit?
The Monthly Salary Credit simply refers to the “compensation base for contributions and benefits related to the total earnings for the month.” Under the new SSS law, the highest Monthly Salary Credit or MSC is P20,000 — up from the previous maximum MSC of P16,000 — which means the member’s premium contribution will now be based on this P20,000 MSC.
The MSC is important because this becomes the basis, not just for the amount of SSS contribution that the employee has to pay, but also for the computation of benefits that the SSS members may receive. According to former SSS Commissioner Emmanuel Dooc in a Philippine Star interview: “As we increase the coverable income, the benefits also increase because this is the basis for computation of SSS benefits.”
For the first category (Employed, Self-Employed, Voluntary Member, and Non-Working Spouse), the applicable minimum Monthly Salary Credit (MSC) has been increased from P1,000 to P2,000, while the maximum MSC has also been increased from P16,000 to P20,000.
For the second category (Household Employers and Kasambahay), the minimum Monthly Salary Credit is P1,000 while the maximum MSC is now P20,000.
For OFWs, the minimum Monthly Salary Credit is P8,000 while the maximum MSC is P20,000.
How much will the MSC increase every year?
Effective April 2019, the new SSS contribution rate is now 12% of the Monthly Salary Credit (MSC) — an additional 1% increase from the previous 11% contribution. Two-thirds of the contribution will be shouldered by the Employer, while the Member-Employee will shoulder the remaining one-third.
Under the IRR of the new SSS law, the contribution rate and the Monthly Salary Credit (MSC) will increase effective January every year from 2019 to 2025.
The contribution rate will rise from 12% of the MSC in 2019 to 15% of the MSC by the year 2025. The maximum Monthly Salary Credit will also rise, from P20,000 in 2019 to P35,000 in 2025.
The new contribution rate and MSC from 2019 to 2025 is shown in the table below.
New SSS Contribution Rate and Minimum / Maximum MSC
|Employer Share||Employee Share||Minimum MSC||Maximum MSC|
Who will pay Employer Contribution of Kasambahay, Self-Employed, Non-Working Spouse?
For kasambahay who is earning less than P5,000 per month, the full SSS contribution will be shouldered by the employer. If the kasambahay is earning more than P5,000 per month, he/she will have a share in the total contribution. The employer still gets to pay more and the distribution of premiums is shown in the contribution table below.
For self-employed, non-working spouse, and voluntary members, since they do not have any employer, they will be the ones responsible for paying the entire SS contribution.
For non-working spouse, they will also be the one to pay the contribution in full, but the basis of contribution will be 50% of the Monthly Salary Credit (MSC) of the working spouse.
Will OFW be allowed to leave for abroad if SSS contribution is not paid?
The newly approved SSS law (RA 11199) provides for mandatory coverage for all OFW — meaning, all Overseas Filipino Workers are now required to pay monthly SSS contributions depending on the salary they are receiving.
Based on the Implementing Rules and Regulations (IRR), an OFW will not be allowed to leave the country unless he or she has paid the required contribution. Thus, payment of full SSS contributions is now a pre-requisite before an OFW can leave to work abroad.
As explained by Rep. Neri Colmenares in a Manila Bulletin interview: “Based on the recently published draft IRR of the Social Security Act of 2018, Rule 14, Section 5 states that a land-based OFW shall pay both the employer and the employee contributions. Our OFWs will be forced to shoulder the entire premium of at least P2,400 per month as long as the host country does not enter into a bilateral agreement to obligate employers to remit their contributions. “
Under the IRR of the new SSS charter, sea-based OFWs (such as seamen or ship crew) are considered “regular employed” members. Their SSS contributions will therefore be collected and remitted to the SSS by their manning or employment agencies which are considered agents, and thus employers of the sea-based OFW.
Land-based OFWs, meanwhile, are currently considered “self-employed” members since current labor agreements do not allow for the same set-up as that of sea-based OFWs. As such, land-based OWs will be solely required to pay the SSS contribution in full prior to leaving for abroad.
This means, they themselves will need to shoulder the “Employer Share” of the SSS contribution. The amount of total SSS contribution of a land-based OFW working in a country with no bilateral labor agreement is shown in the right-most columns of Table 3 below. (Also see sample computation below in the section “Sample Computations of SSS Contributions.”)
However, the law has mandated the Department of Foreign Affairs (DFA) and the Department of Labor and Employment (DOLE) to negotiate bilateral labor agreements in countries where there are OFWS to see if the deduction of employer share may be enforced by the country.
If that happens, the OFW will be treated as a regular employee responsible only for the Employee share while the employer will then be required to pay the Employer’s counterpart contribution. But for now, the OFW will be solely responsible to pay the entire SSS premium, including the employer share, until those bilateral labor agreements are signed.
2019 Updated SSS Contribution Tables
The three (3) main SSS contribution tables are shown below. For a guide on how to read the SSS tables and how to compute the monthly contributions, refer to our examples in the next section.
1. New SSS Contribution Table for Employed / Self-Employed / Voluntary Member / Non-Working Spouse
2. New SSS Contribution Table for Household Employers and Kasambahay
3. New SSS Contribution Table for OFW
How to Read the 2019 SSS Tables
Knowing how to use the SSS contribution table can help you better understand if the monthly SSS premium deducted from your salary is correct. To know this, you must be able to properly identify the following information from the rows and columns in given SSS tables.
- Range of Compensation is the category where your monthly salary belongs. For example, if you’re an employee receiving P14,800 monthly salary, your “Range of Compensation” is P14,750-P15,249.99 (from Table 1 above). If you’re an OFW receiving salary of P100,000 per month, your “Range of Compensation” is the last row, representing the maximum Monthly Salary Credit of P20,000 in Table 3 above. Even if the actual monthly compensation is P100,000, the applicable MSC is the final row with compensation range of “P19,750 and above”.
- Social Security – EE (or the column “SS Contribution-EE“) means Employee contribution; basically the amount of your personal SSS contribution as an employEE (thus, “EE”).
- Social Security – ER (or the column “SS Contribution-ER“) is the counterpart contribution of your employER (thus,”ER”).
- EC Contribution – ER represents contributions for the “Employees’ Compensation” (EC) Program which is a fund for work-connected injury, sickness, disability and death with cash income benefit, medical, rehabilitation and related services. The EC contribution is solely paid by your employer.
- Total Contribution (Total) – this shows you the full amount of your SSS contribution, combining both your personal contributions and your employer’s counterpart payment, if applicable.
Now to properly compute your monthly SSS contribution, follow these step-by-step instructions.
Step-by-Step Guide: How to Compute SSS Contributions
Step 1. Compute “Actual Remuneration”
Take note that as per the SSS Citizen’s Charter, the term “compensation” refers to “actual remuneration for employment, including the mandated cost of living allowance, as well as the cash value of any remuneration paid in any medium other than cash except that part of the remuneration received during the month in excess of the maximum salary credit as provided in the SS Law.”
This simply means that the “actual remuneration” received by the employee, and NOT the stated gross or basic monthly compensation, is going to be used as basis when computing the SSS contribution.
A clear application of how the SSS contribution will change, depending on the actual compensation received by the employee, is shown in Example 2 below in the section “Sample Computations of SSS Contributions”.
Step 2. Check “Range of Compensation”
With the actual remuneration verified, the next step is to refer to the applicable SSS Contribution Table (see above) depending on the membership type.
If the member is “Employed / Self-Employed / Voluntary Member / Non-Working Spouse”, the relevant table is No. 1 above.
If the member is a “Kasambahay”, the contribution table to use is No. 2 above.
Finally, if the member is an OFW, the SSS table that will be relevant is table No. 3 above.
Now, under the “Range of Compensation” column in the applicable SSS table, look for the row where your gross monthly salary or actual remuneration falls under.
For example, if you’re an Employee of a company in the Philippines with gross monthly salary of P15,000.00, the relevant row is the compensation range “P14,750 – P15,249.99” in the first table above (“SSS Contribution Table for Employed members”).
If you’re an OFW receiving gross monthly compensation of P200,000, the relevant row is the compensation range “P19,750 and above” in the third table above (“SSS Contribution Table for OFW members”).
Step 3. Pay corresponding “Total Contribution”
I. For salaried employees, the amount of the EmployER share and EmployEE share can be seen in the “Total Contribution” columns.
The Employer pays the amount in the “Total Contribution – ER” column, while the Employee pays the amount in the “Total Contribution – EE” column. The amount to be remitted to SSS by the employer is the sum of the two, and can be seen in the “Total Contribution – Total” column.
So in the case of an Employee earning P15,000 salary per month, the Employer Share is P1,230.00 while the Employee Share is P600.00 (based on Table No.1 above). This means, the employee will be deducted the amount of P600.00 from his or her monthly salary, while the employer must remit to SSS the full contribution of P1,830.00 (computed as P1,230.00 + P600.00).
II. For Self-Employed (SE), Voluntary Member (VM), or Non-Working Spouse (NWS), the only relevant column is the “SE/VM/NWS – SS Contribution” column. There is no Employer share since they are either not working or working but with no other employer but themselves. In this case, they will be the one to shoulder the entire contribution.
So if you’re a Voluntary Member earning gross compensation of P5,000 per month, based on the SSS table No. 1 above, your SS contribution will be P600.00 per month.
Sample Computations of SSS Contributions
Looking for more specific examples of SSS members to better understand how much to deduct as SSS contribution every month? Check out our sample computations below.
Example 1: Regular Employee earning P18,000 monthly salary
Mr. Suave works as a BPO call center agent in the Philippines. His gross monthly compensation is P18,000. How much will be deducted from his salary as SSS contribution (EE Share)? How much is the Employer share (ER Share)? How much will the employer remit in total to SSS?
Answer: From the SSS contribution table No. 1 above:
|From Table No. 1||SSS Contribution Table for Employed Members|
|Range of Compensation||P17,750 - P18,249.99|
|Monthly Salary Credit||P18,000|
|Total Contribution - EMPLOYER (ER)||P1,470|
|Total Contribution - EMPLOYEE (EE)||P720|
|Total Contribution to be Remitted to SSS||P2,190|
Given no change in compensation that Mr. Suave will receive every month, the Employee Share (EE) is P720 while the Employer Share (ER) is P1,470. The total amount of remittance to SSS is P2,190 every month.
Example 2: Regular Employee with Overtime Pay and Late Deductions
Ms. Minchin is a bank teller receiving P15,000 per month. She received an overtime pay for the month amounting to P1,000 but she was late several times and was penalized late deduction of P500. How much will be remitted to SSS?
Answer: Although Ms. Minchin’s gross basic salary is P15,000, the relevant amount is “actual remuneration or payment” received by the employee, according to the SSS Citizen’s Charter.
The actual remuneration she received was P15,500 (computed as P15,000 plus + P1,000 overtime minus – P500 late deduction). Given remuneration of P15,500, the relevant Compensation Range row is P15,250 – P15,749.99 (NOT the P14,750-P15,249.99 row based on her P15,000 basic salary).
Her SSS contribution will be computed as follows (from SSS Contribution Table No. 1 above):
|From Table No. 1||SSS Contribution Table for Employed Members|
|Range of Compensation||P15,250 - P15,749.99|
|Monthly Salary Credit||P15,500|
|Total Contribution - EMPLOYER (ER)||P1,270|
|Total Contribution - EMPLOYEE (EE)||P620|
|SSS Contribution to be Remitted||P1,890|
The Employee Share (EE) is P620 while the Employer Share (ER) is P1,270. Thus, the total amount of remittance to SSS for this month is P1,890.
Example 3: Sea-based OFW earning P50,000 per month
Mr. Seaman is a sea-based OFW receiving gross compensation amounting to P50,000 per month. How much will he pay as SSS contribution? How much will his employer contribute?
Answer: Based on SSS Table No. 3 above, Mr. Seaman will pay the Employee share of P800, while his employer will be required to pay the Employer share of P1,630. The total contribution to be remitted to SSS is P2,430.
Under the current Implementing Rules and Regulations (IRR), the “Employer share” shall be paid by the manning or employment agency of Mr. Seaman.
|From Table No. 3||SSS Contribution Table for OFW|
|Range of Compensation||P19,750 - above|
|Total Contribution - Employer (ER)||P1,630|
|Total Contribution - EMPLOYEE (EE)||P800|
|SSS Contribution to be Remitted||P2,430|
Example 4: Land-based OFW earning P25,000 per month
Miss DH is a land-based OFW working as a domestic helper in Hong Kong. She receives monthly salary of P25,000 per month. How much will she pay as SSS contribution? How much will her employer contribute?
Answer: There is currently no bilateral labor agreement that will require Miss DH’s employer to pay the “employer share” and, as a consequence, Miss DH will be the one responsible to pay SSS both the “employee contribution” and “employer contribution.”
Based on SSS Table No. 3 above (right-most columns), Miss DH will pay the entire SSS contribution of P2,400 per month.
|From Table No. 3||SSS Contribution Table for Land-based OFW|
|Range of Compensation||P19,750 and above|
|Monthly Salary Credit||P20,000|
|Total Contribution - EMPLOYER (ER)||0|
|Total Contribution - EMPLOYEE (EE)||P2,400|
|Total Contribution to be Remitted to SSS||P2,400|
Example 5: Kasambahay earning P3,000 per month
Yaya Dub is a kasambahay employed by Mr. Alden. Yaya Dub earns gross salary of P3,000 per month. How much is Yaya Dub’s SSS contribution?
Answer: According to the new SSS law, kasambahays earning less than P5,000 per month are not required to pay the Employee share. Thus, based on SSS Table No. 2 above, the entire contribution amount of P370 shall be paid and remitted to SSS only by Mr. Alden, employer of Yaya Dub. (Relevant “range of compensation” is the row P2,750 – P3,249.99.)
|From Table No. 2||SSS Contribution Table for Kasambahay|
|Range of Compensation||P2,750 – P3,249.99|
|Monthly Salary Credit||P3,000|
|Total Contribution - EMPLOYER (ER)||P370|
|Total Contribution - EMPLOYEE (EE)||0|
|Total Contribution to be Remitted to SSS||P370|
Example 6: Kasambahay earning P6,000 per month
Because of her competence, Yaya Dub was given a salary increase by her employer Mr. Alden. Yaya Dub now receives a gross monthly salary of P6,000. How much will her SSS contribution be this time?
Answer: Since her compensation is now above the threshold limit of P5,000 per month, Yaya Dub is now responsible for paying the Employee share of the SSS contribution. The applicable table is SSS Table No. 2 above and the relevant “range of compensation” is the row P5,750 – P6,249.99.
Yaya Dub will pay Employee share of P240.00, while the employer Mr. Alden will pay Employer share of P490.00. The total amount to be remitted to the SSS is P730.00.
|From Table No. 2||SSS Contribution Table for Kasambahay|
|Range of Compensation||P5,750 - P6,249.99|
|Monthly Salary Credit||P6,000|
|Total Contribution - EMPLOYER (ER)||P240|
|Total Contribution - EMPLOYEE (EE)||P490|
|Total Contribution to be Remitted to SSS||P730|
Deadline to Pay SSS Premiums
Here’s a summary of the SSS payment deadlines this year (January to June 2019), as officially announced by the SSS:
- Regular Employers – end of the month after the applicable month.
- Household Employers – end of the month after the applicable month or quarter, depending on the schedule of payment.
- Self-employed (SE) / Voluntary member (VM) / Non-working spouse (NWS) – contributions for the months of January 2019 until June 2019 may be paid until July 31, 2019.
Example 1 (Regular Employers): Contribution for the month of February may be paid until March 31.
Example 2 (Household Employers): Contribution for the month of May may be paid until July 31.
Example 3 (SE / VM / NWS): Contribution for the month of April may be paid until July 31.
New Policy on Advance Payments: Self-Employed / Voluntary / NWS
For Self-Employed / Voluntary / Non-working Spouse members who have already paid their contributions in advance for April 2019 onwards, the applicable rules are as follow:
1. Those with advance payments at the minimum MSC of P1,000.00 shall settle underpayments with an amount of P130.00 per month. P75.00 per month shall be remitted for those who paid at P1,500.00 MSC; otherwise, such advance payment shall be deemed as ineffective contributions; and
2. Those with advance payments on MSC other than the minimum P1,000.00 and P1,500.00 may pay the corresponding increase in contributions to retain posting at the same MSC; otherwise, such payment shall be posted at the applicable lower MSC.
New Policy on Advance Payments: OFW
For OFW members who already made advance payments for their contribution in April 2019 onwards, the new policy is as follows:
1. To retain the posting of those contributions at the new MSC of P8,000.00, the OFW must settle underpayments amounting to:
- P410.00 per month (for those with advance payments at the minimum MSC of P5,000.00);
- P355.00 per month (for P5,500.00 MSC)
- P300.00 per month (for P6,000.00 MSC)
- P245.00 per month (for P6,500.00 MSC)
- P190.00 per month (for P7,000.00 MSC)
- P135.00 per month (for P7,500.00 MSC)
Otherwise, such advance payment shall be deemed as ineffective contributions; and
2. Those with advance payments at an MSC other than the minimum may opt to pay the corresponding increase in contributions to retain posting at the same MSC; otherwise, such payment shall be posted at the applicable lower MSC.
Why SSS Premiums Have to Increase
According to the SSS management, the recent increase in monthly SSS contributions is expected to help reduce the pension fund’s unfunded liability. “Unfunded liabilities” are future obligations of the SSS in which no funds have been set aside.
Back in 2014, the SSS could only cover obligations and liabilities up to year 2039. This meant that after 2039, the SSS would have been unable to provide pension and benefits anymore to its members. However, in 2017, Pres. Rodrigo Duterte approved a proposal to increase the monthly pension received by SSS retirees by P2,000 per month. The first additional P1,000 monthly pension increase was paid beginning 2018 and the next P1,000 increase was paid beginning 2019.
This move, although benefited more than 2.3 million SSS pensioners, cut short the life of SSS by more than ten (10) years. Because of the pension hike, the life of the SSS was cut short to year 2026, meaning, by 2026 the SSS would have been unable to pay its obligations and members might no longer receive monthly pension or other benefits by then.
Thus, the additional increase in monthly contributions was necessary in a bid to prolong the life of the SSS. According to the SSS, the approval of the Social Security Act of 2018 extended the life the fund until the year 2045, “on the back of the implementation of the contribution increase and adjustment in minimum and maximum salary credits under the newly-signed law.”
We just hope the SSS management will be prudent and competent enough to manage these funds from this point onwards. Otherwise, the happy retirement of millions of Filipinos banking on the SSS will be put at risk.
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