The Social Security System (SSS) deduction is reflected on every employee's payslip and is essential for compliance with government labor regulations. While the monthly deductions may seem inconvenient, they are intended to provide long-term benefits, allowing individuals to receive recompense for the months or years of payments they've made.
Currently, the SSS contribution rate is 15% of the monthly salary credit, up to a maximum of P35,000. This contribution is shared between the employer and the employee.
The SSS uses a table to determine the deduction amount based on an employee's monthly income.
Source: SSS website
For instance, a person earning Php 10,000 will have a total contribution of Php 1,510.00.
Out of this amount, Php 500.00 will be paid by the employee, while the remaining Php 1,000.00 (plus Php 10.00 for employee compensation or EC fee) will be shouldered by the employer.
As companies grow and salaries adjust due to promotions or other changes, this computation can become more complex for employers. To simplify the process, employers can use payroll software like our very own Sprout Payroll.
Sprout Payroll automates the SSS computation and provides employees with a clear and easy-to-understand payslip format.
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