When it comes to calculating Social Security System (SSS) contributions in the Philippines, one of the most important documents that you need to familiarize yourself with is the SSS Contribution Table. This table contains the updated figures for the contributions for each month.
Knowing this information will help ensure that you are following the SSS payment schedule, making the right contributions, and avoiding any potential penalties or fines due to incorrect payments.
In this article, we will take a detailed look at the SSS Contribution Table effective January 2023 and explain why it is important to understand and follow it. Moreover, we’ll discuss the advantages of the new contributions schedule and the frequently asked questions about it.
|Year||Contribution Rate||Employer||Employee||Minimum Monthly Salary Credit||Maximum Monthly Salary Credit|
Understanding the SSS Monthly Contribution Table
The official schedule issued by the Social Security System in the Philippines is designed to provide guidance to its members regarding the specific monthly contribution amounts based on their monthly salary credit or compensation range.
This schedule is known as the SSS Contribution Table, which is regularly updated to reflect changes in the law and other relevant factors.
- The Contribution Table is structured with columns for the minimum and maximum salary ranges for each bracket, as well as columns for the new contribution rates.
- The Contribution Table is organized by salary bracket, with the lowest bracket at the top and the highest bracket at the bottom.
- The Contribution Table also includes information on the maximum monthly contribution, as well as the total amount of contributions that must be made over the course of a year.
- The SSS Contribution Table serves as the basis for calculating the monthly contributions of SSS members, which are deducted from their salaries or income. The table also specifies the requirements for membership and the benefits that members are entitled to.
The SSS Contribution Table is an important tool for SSS members as it helps them meet their obligation to contribute to the system and ensures that they receive the corresponding benefits when the need arises.
Recently, the SSS Contribution Table underwent an increase in contribution rates, which was implemented to ensure the long-term sustainability of the SSS system.
This increase highlights the importance of following the SSS Contribution Table and fulfilling one’s obligation to contribute to the system.
Calculating Your Contribution Payments Through The New SSS Contribution Table 2023
Calculating your total monthly contribution payments through the SSS Contribution Table makes life much easier for the members especially those who have multiple jobs throughout the year.
To do this properly though, you need to be familiar with all five sections mentioned above as well as each subsection within them so you can accurately calculate your total amount owed each month without incurring any late fees or penalties.
Here is a step-by-step guide for calculating your contribution payments:
- Determine your total wages/salaries earned during the month including tips and bonuses if applicable using your payslip or other records kept by your employer(s).
- Calculate any additional payments that may be due based on factors such as age, disability status, etc., using the Additional Payments section in the Latest SSS Table as a reference guide.
- Deduct any applicable tax deductions according to what is outlined in the Tax Deductions section in the same table.
- Subtract all deductions from total wages/salaries earned and refer back to the Required Contribution section. This is necessary in order to find out exactly how much you owe each month based on the salary range listed there (e.g., P15k-P30k = P750).
Type of Monthly SSS Contribution
There are several types of SSS contributions that SSS members are required to make in the Philippines. These include:
1. Employees and Employer Contributions
These are the regular contributions that are made on a monthly basis by both the employer and employee. The amount of these contributions is based on the employee’s salary and is calculated using the SSS Contribution calculator.
This table serves as a guide for employees and employers to determine their monthly contributions for their pension plan, insurance coverage, and retirement savings. Compute your retirement amount with the SSS pension calculator.
Moreover, through this table, employees can easily identify their salary bracket and the corresponding contribution rate, while employers can determine their share from the total contribution.
The new contribution rate will be 14% and the minimum MSC will be P4,000, while the maximum MSC will be P30,000.
This scheme emphasizes the value of collaboration between employees and employers in promoting financial literacy and responsible financial planning.
2. Self-Employed Contributions
Self-employed professionals and freelancers are now required to pay a mandatory provident fund based on their monthly salary credit, reflecting the government’s commitment to ensuring the financial security and welfare of the self-employed workforce.
The new table for Self-Employed provides a framework for self-employed individuals to make contributions that are commensurate to their income and reap the corresponding benefits coverage.
Those who have made advance payments based on the old contribution schedule must settle any underpayment to retain the posting of contributions to the new minimum MSC of ₱4,000.00.
Self-employed individuals who want to maximize their benefits coverage may also opt for voluntary contributions. By taking advantage of this option, they can increase their savings and receive additional tax benefits.
Overall, the new table for Self-Employed is a step towards ensuring that the self-employed workforce is adequately protected and prepared for their retirement years.
Also check: SSS Contribution Table for Self Employed
3. Voluntary Member and Non-Working Spouse
The voluntary members and non-working spouses who wish to maintain their active SSS membership should adhere to the prescribed monthly salary credit (MSC) and corresponding employee and employer contribution rates stated in the contribution table.
For voluntary members, the prescribed minimum MSC is ₱4,000.00, and the corresponding employee contribution rate is 14% of the MSC, while the employer contribution rate is 8.5% of the MSC.
The maximum MSC is ₱20,000.00, and the corresponding employee and employer contribution rates are ₱2,400.00 and ₱1,700.00, respectively.
Non-working spouses, on the other hand, are required to contribute 50% of their working spouse’s MSC. The prescribed minimum MSC for non-working spouse contributions is also ₱412.5, while the maximum MSC is ₱2,475.
Payment options for voluntary members and non-working spouses include over-the-counter payments, online payments, and auto-debit arrangements.
Benefits for voluntary members include retirement, sickness, disability, and death benefits, among others, while benefits for non-working spouses include maternity, disability, and death benefits, among others.
4. OFW (Overseas Filipino Worker) Contributions
Land-based OFW members are advised to settle underpayment or pay corresponding increases in contributions.
It is necessary to retain posting at the same MSC for advance payments made based on the old contribution schedule to avoid ineffective contributions. Moreover, this applies to contributions made for the applicable months of January 2023 onwards.
Failure to settle the underpayment or pay the corresponding increase in contributions will result in the advance payment being posted at a lower MSC.
This means that the OFW may not be able to enjoy the same benefits that they would have if they paid the correct amount.
Overseas workers who wish to become SSS members may do so by registering online or through the nearest SSS branch for OFWs.
- Eligibility requirements include being at least 18 years old and not more than 60 years old, with a valid passport and work contract.
- Payment options for contributions include voluntary payments or through their respective employers.
- The contribution rates are based on the monthly salary credit (MSC) and range from ₱2,000.00 to ₱20,000.00.
It is important for OFWs to keep track of their contributions to ensure that they are able to maximize the benefits that they are entitled to.
The OFW can remit their own contributions with SSS online account or through accredited remittance centers.
You can check: SSS Contribution Table for OFWs
5. Kasambahay and Household Employee Contribution
Just as a household is incomplete without the services of a kasambahay, the table for household employers ensures that their domestic workers are also provided with employee and employer contribution rates that vary based on the monthly salary credit.
The contribution rates range from P225 at the minimum monthly salary credit of P2,000 to P1,800 at the maximum monthly salary credit of P20,000. The employer is responsible for remitting the contributions, which are mandatory under the law.
Kasambahay rights are protected under the Batas Kasambahay, which mandates the payment of minimum wage, social security benefits, and other labor rights.
Household employers are required to provide their kasambahay with an employment contract that outlines the terms and conditions of employment, including working hours, rest periods, and benefits.
The SSS contribution table for household employers is just one of the many ways by which the government ensures that kasambahays are provided with the necessary social security benefits that they are entitled to under the law.
By complying with the contribution requirements, household employers are helping to improve the working conditions and welfare of their kasambahay.
SSS Contribution Schedule 2023
Advantages of the New SSS Contributions Schedule
The implementation of the Workers’ Investment and Savings Program (WISP) through the new SSS contributions schedule provides greater social security benefits and pension savings for members while promoting the importance of mandatory provident funds and online transactions.
The new contribution schedule ensures that a larger percentage of a member’s monthly income is covered, which can lead to larger benefits and pension savings in the future.
Moreover, the employer’s share has increased to 9.5%, while the employee’s share remains at 4.5%, thereby making it easier for members to meet their financial obligations.
In addition, contributions starting at the Monthly Salary Credit (MSC) above P20,000 shall go to the SSS Provident Fund called WISP, which allows members to build up their savings for retirement and emergencies.
The changes in the SSS contributions schedule have significant implications for both employers and employees.
- For employers: They must now ensure that they are contributing the correct amount to their employees’ accounts, as failure to do so can result in penalties and legal consequences.
- For employees: They can look forward to receiving greater benefits and pension savings, which can help secure their financial future.
Furthermore, the promotion of mandatory provident funds and online transactions highlights the importance of financial literacy and responsible financial planning.
Comparatively, the new SSS contributions schedule is a step in the right direction toward improving social security benefits and pension savings for all members.
Updated Deadline for SSS Contribution Payment
Previously, we discussed the advantages of the new SSS contribution schedule that will be implemented in 2023. Now, let us delve into the updated deadline for SSS contribution payment.
It is important to note that the payment deadline for regular employers and household employers remains the same, which is on the last day of the month following the applicable month or period.
However, for voluntary members, self-employed individuals, OFWs, non-working spouses, farmers, and fishermen, the deadline has been extended.
The new payment deadline for voluntary members, self-employed individuals, OFWs, non-working spouses, farmers, and fishermen is now on or before the 10th day of the following month.
This extension aims to provide more time for these members to settle their contributions without incurring penalties.
Moreover, the SSS has also made it easier for members to pay their contributions by offering various payment methods such as online payment options and payment reminders.
Nevertheless, it is important to note that late payment of contributions may result in consequences such as the forfeiture of benefits, penalties, and even legal action.
Thus, it is crucial for members to settle their contributions on time to avoid these repercussions.
Benefits of Following the SSS Contributions Table
Following the latest SSS Contribution Table can bring a number of benefits for employees and employers.
1. Ensures Compliance with Government Regulations
The first benefit is that it ensures compliance with government regulations. By understanding and following the table, members can ensure that they are making the appropriate contributions to the SSS.
This can help to avoid fines and penalties for non-compliance.
2. Maximize Benefit Payouts from SSS Funds
The second benefit is that it helps to maximize benefit payouts from SSS funds. By making the appropriate contributions, members of SSS can help to maximize the benefit payouts they are eligible for from the SSS funds.
This can include retirement benefits, disability benefits, and more.
3. Allows Easy Tracking of Contributions and Benefits
Another benefit of following the SSS Monthy Contributions Table is that it allows for easy tracking of contributions and benefits.
By keeping track of contributions, members can ensure that they are on track to receiving their benefits when they become eligible.
4. Ensure Sufficient Funds are Available
Lastly, following the Contribution Table also helps to ensure that there are minimum monthly salary credit funds to provide benefits to eligible members in case of contingencies.
FAQs About Latest SSS Contribution Table 2023
Who are the primary beneficiaries of an SSS member?
Understanding the primary beneficiaries of an SSS member is crucial in securing their financial stability and ensuring that their dependents receive the necessary benefits.
The Social Security System (SSS) provides various benefits to its members, including retirement, disability, and survivor benefits. Dependents of an SSS member who passes away or becomes disabled may receive benefits to help them cope with the loss of income.
The primary beneficiaries of an SSS member include their legitimate dependent spouse until the member remarries, and legitimate, legally adopted, and illegitimate children below 21 years old.
If the member has no spouse or children, the parents will be the member’s primary beneficiaries.
It is important to note that the SSS member can also designate their preferred beneficiaries if they do not have any of the primary beneficiaries mentioned above.
By understanding who the primary beneficiaries are, SSS members can ensure that their loved ones are taken care of in case of unforeseen circumstances.
|Retirement Benefit||Primary beneficiaries and secondary beneficiaries||Member must have reached the age of 60, have paid at least 120 monthly contributions, and have stopped working|
|Disability Benefit||Primary beneficiaries and secondary beneficiaries||Member must have paid at least 36 monthly contributions and be unable to work due to a disability|
|Survivors Benefit||Primary beneficiaries and secondary beneficiaries||Dependents of a deceased SSS member who has paid at least 36 monthly contributions|
The SSS provides a safety net for its members and their dependents, ensuring that they are protected in times of need.
By understanding the eligibility requirements and the different benefits provided by the SSS, members can plan for their future and secure their financial stability.
Can I withdraw my SSS contribution?
Unlike Pag-IBIG contributions, SSS contributions cannot be refunded, which means that you can only claim benefits or your pension upon retirement age.
However, there are certain circumstances where withdrawal eligibility for SSS contributions is possible. The SSS refund process allows members to apply for a refund if they have overpaid their contributions or have double contributions.
The contribution refund limits vary depending on the number of contributions made, and the refund amount may include the principal amount, interest, and penalties.
To apply for a refund, members must submit the necessary documents and complete the application form.
It’s important to note that SSS contribution suspension may affect your eligibility for benefits, so it’s crucial to understand the impact of suspending your contributions before making any decisions.
The new SSS contribution table for 2023 has been released, outlining the updated rates for employees, employers, self-employed individuals, OFWs, voluntary members, and non-working spouses.
This new schedule offers several advantages, including increased benefits for members and enhanced social security coverage for Filipinos.
In addition to the latest contribution rates, the SSS has also updated the deadline for contribution payments, giving members more time to ensure that their payments are up-to-date.
While some may have questions about the new schedule, it is important to note that these changes are designed to provide greater security and financial stability for all SSS members.
By following the updated guidelines and contributing regularly, members can protect themselves and their families against unexpected financial hardships.
Overall, the new SSS contribution table for 2023 represents a step forward in promoting a more secure and stable future for all Filipinos.