The Social Security System (SSS) of the Philippines is a government agency with the mandate to provide social insurance to private, public, professional, and informal sectors. Monthly contributions to SSS are based on the compensation of members (see table below). The current SSS contribution rate is 11% of the monthly salary credit not exceeding P16,000 and this is being shared by the employer (7.37%) and the employee (3.63%).
On Sprout Payroll, we provide different options on how SSS contributions can be computed. This can be configured on the Company tab. Simply click on Setup, then Profile, and Government Contributions.
Let's take a look at these various options below:
Option 1: By Month
- For instance, an employee’s monthly basic salary is P10,000. Looking at the contribution table above, look for the monthly salary credit range where 10,000 falls under. The SSS monthly contribution is P363.30 as found under SS-EE share.
- Aside from this, it is also advisable to know the employer's contribution. Going back to the SSS Table, simply look for SS-ER for the same monthly salary credit range which amounts to P736.70, while SS-EC share will be P10.00. Hence, the total amount that is debited into the employee’s SSS Contribution is P1,100 (a total of both the employee’s and employer’s share).
Option 2: By Period
- For instance, an employee’s semi-monthly basic salary is P5,000, plus overtime amount of P1,000 less absences of P500 and additional salary adjustment amounting to P500. Now, his total income for the payroll period is P6,000.00 (P5,000 + P1,000 - P500 + P500). Looking at the contribution table above, look for the monthly salary credit range where P6,000.00 belongs. The SSS semi-monthly contribution is P218.00 as found under SS-EE share.
- Now, let’s find out its counterpart in the employer's contribution. Going back to the SSS Table, simply look for the SS-ER which amounts to P442.00 while SS-EC share will be P10.00. Hence, the total amount that is debited in the employee’s SSS Contribution is P660 (total of both employee’s and employer’s share).
It is important for everyone to know how these computations are made -- perhaps not just to see if it was correctly done, but simply to know how it came about. It never huts to be more aware, does it?
For any further questions or concerns you may have regarding this, feel free to message us at firstname.lastname@example.org. We look forward to hearing from you.