How to Calculate Your SSS Contribution

The Social Security System (SSS) deduction is reflected on employee payslip every payout is necessary for everyone in compliance with government labor regulations. While the monthly deductions may seem inconvenient, the idea is that in the long run, the individual may get due recompense for all the years or months of payment that have been cashed in, quite literally.

The current SSS contribution rate is 13% of the monthly salary credit not exceeding P25,000 and this is being shared by the employer (8.50%) and the employee (4.50%). 

The SSS uses a table to determine the amount that should be deducted from an employee based on his monthly income.

Source: SSS website

For instance, a person earning Php10,000 will have a contribution of Php1,310.00

Out of this amount, only Php450.00 will be paid by the employee. The remaining Php850.00 (+ Php10 for employee compensation or EC fee) will be shouldered by the employer.

This computation can become more complex on the end of employers as the company grows bigger and as salaries adjust every now and then because of promotions and other changes that necessitate salary adjustments. To help make the computations easier and simpler, employers can choose to use payroll software like our very own, Sprout Payroll.

This will automate SSS computation while providing employees with a payslip format that they can easily understand and navigate around in.