The SSS governing board has approved contribution increase for its members. Are you a member of SSS? This news affects you, be in the know.
The Social Security System or SSS which oversees the pension plan for the private sector will impose a higher contribution rate for its members, from the existing 11% to 12% effective April 1, 2019. Not only the SSS contribution rate will increase but also the minimum monthly salary credit (MSC) which will go up to P2,000 and the maximum to P20,000.
Why the increase in SSS contribution / premium?
If you remember, SSS increased the monthly pension of qualified members last January 2017 by P1,000 and another P1,000 increase is projected to be given this 2019. Because of the pension increase championed by President Duterte, the SSS fund life was slashed by approximately 10 years.
Now, if the additional P1,000 pension increase happens this 2019 without any contribution increase, then the SSS fund life will be in a precarious situation, it’ll be further shorten. Without contribution increase of active members, those who will retire in 20 years and more may experience smaller and smaller pension. This is a scary possibility for future retirees if nothing is done today.
To make sure that the fund can sustain future SSS pensioners, a contribution increase is needed asap. Now, we are here with the SSS increase of contribution effective April 2019. By doing this move, SSS management believes that the fund life can cover member’s pension and benefits until 2045.
Pension increase is a win for SSS pensioners but it’s a burden to current active members. But nothing can be done since premium increase will be implemented starting next month. What the private sector members can do is to tighten the belt a little more and include the contribution increase in every month’s budget.
NEW SSS TABLE OF CONTRIBUTION (Updated 2020)
The minimum monthly salary credit or MSC is P2,000. If you are a worker in the private sector who is earning P2,250 or less every month, your contribution will be P240 (P2,000 x 12% = 240).
*Again, the new contribution rate is 12%.
Hindi ang buong P240 ang babayaran mo, kasi share kayo nyan ng iyong employer. Ang babayaran mo monthly ay P80, habang ang employer mo ay magbabayad ng halagang P160.
Contribution: P80 + P160 = P240
What if mas malaki sa P2,250 ang monthly salary mo, magkano ngayon ang individual share mo at magkano ang share ng company or employer mo? We have this updated 2019 SSS Contribution Table for reference.
UPDATED SHARE IN SSS CONTRIBUTION:
Househelp or Kasambahay
For kasambahay who are earning P5,000 and below, it is the employer who will pay the entire SSS contribution. Wala ka dapat share sa babayaran sa SSS kasi ang amo mo ang magbabayad neto as mandated by the Kasambahay Law.
For kasambahay or househelp who are earning P5,000 and above, may share ka na sa contribution.
Househelp who are earning P7,750 to P8,249.99, the contribution share of the employer is P640 and the contribution ng kasambahay mismo is P320. For a total SSS contribution of P960 per month.
Private Sector Employees
If you are earning P9,750 to P10,249.99, your MSC is P10,000. Your share in SSS contribution is P800, while your employer will pay P400, for a total SSS monthly contribution of P1,200.
If you are earning P14,750 to P15,249.99, your MSC is P15,000. Your SSS contribution share is P600, while your employer’s share is P1,200, for a total of P1,800.
The maximum MSC is P20,000 this is for those private sectors employees who are earning P19,750 and above. If you belong to this group, your share is P800 while your employer will shoulder P1,600, for a total of P2,400.
Overseas Foreign Workers
The minimum MSC for OFWs is P8,000 with monthly contribution of P960.
Yung mga land-based OFWs na nagtratraho sa mga bansa na may Bilateral Labor Agreement with the Philippines, as well as SEA-based OFWs, the monthly contribution is shared between the OFW and the employer. See the contribution table for reference.
For land-based OFWs who are working in countries without bilateral labor agreement with the Philippines, the whole contribution will be paid by the OFW to the SSS.
For OFWs earning P19,750 the MSC is P20,000. The contribution rate to the SSS Fund is P2,400 monthly. Again, if seaman ang OFW or landbased who are working in countries with bilateral agreement with our country, the employer has a share in contribution.
Voluntary Members, Self-Employed, Non-Working Spouse
For voluntary members, self-employed and non-working spouse, these are the SSS contribution depending on MSC. and range of compensation. Take note that if you belong to this, you will pay the whole amount because you do not have an employer to share with you.
In the table, we can see that for a self-employed or voluntary member of SSS if the salary is P6,750 to P7,249.99, the SSS monthly contribution is P840.
For those SE/VOLUNTARY/NON-WORKING SPOUSE with range of compensation from P11,750 to P12,249.99, the new monthly contribution is now at P1,440.
For those SE/VOLUNTARY/NON-WORKING SPOUSE with compensation range from P19,750 and above, the update SSS contribution beginning April 2019 is P2,400.
*The contribution of the Non-Working Spouse shall be based on fifty percent (50%) of the Monthly Salary Credit (MSC) of his/her working spouse.
In case the fifty percent (50%) of the working spouse’s declared monthly income does not correspond to any MSC in the Contribution Schedule, the immediately higher MSC shall be the basis.
For any questions visit an SSS branch or contact them via these numbers and email:
- SSS Trunkline No. (632) 920-6401
- SSS Call Center: 920-6446 to 55
- Toll-Free No.: 1-800-10-2255777
- SSS Email: email@example.com
Keep abreast with the latest news and updates on SSS. See the other iSensey useful SSS articles.