How to Compute for SSS Contribution

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 (SSS TABLE). 

Starting January 1, 2023, as per Social Security Commission (SSC) Resolution No 751-S 2022 dated November 25, 2022, the new SSS contribution rate will be 14 percent, a one percent increase from the current 13%. The 14 percent is composed of 9.5% Employer Share and 4.5% Employee Share while the minimum Monthly Salary Credit (MSC) will be increased from P3,000 to P4,000 and the maximum MSC from P25,000 to P30,000. The 1% increase is to be shouldered by the employer and the employee’s share remains at 4.5%.

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 P450.00 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 P950.00, while SS-EC share will be P10.00. Hence, the total amount that is debited into the employee’s SSS Contribution is P1,410.00 (a total of both the employee 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 P270.00 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 P570.00 while SS-EC share will be P10.00. Hence, the total amount that is debited in the employee’s SSS Contribution is P850.00 (total of both employee and employer’s share)

In addition to this, there is a Mandatory Provident Fund (MPF) deduction for those contributing at a Monthly Salary Credit (MSC) above P20,000 to the maximum of P30,000. 

The WISP contributions are shared by the Employee and Employer.

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 hurts to be more aware, does it?