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The Social Security System or SSS is a mandatory social insurance program in the Philippines that provides benefits for workers in the country. One of the main ways that SSS is funded is through regular contributions made by employees, employers, and at times, self-employed individuals. Understanding how SSS contributions work is an important part of financial planning and securing your future as an employee in the Philippines.

What are SSS Contributions?

SSS contributions refer to the amounts regularly paid to SSS by employees, employers, and self-employed individuals. These contributions go into the SSS fund which is then used to provide social security protection and benefits to covered members.

Making SSS contributions as an employee in the Philippines is required by law. Failing to pay the correct SSS contributions can result in penalties and compromised access to future benefits. As an SSS member, contributions ensure your eligibility to receive future assistance for major life events through sickness, maternity, disability, retirement, or death benefits.

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How Much is the SSS Contribution?

SSS contributions are based on the employee’s monthly salary credit or actual monthly earnings. Here are the current contribution rates:

  • Employees contribute 4% of their monthly salary credit.
  • Employers contribute 7.37% based on the employee’s monthly salary credit.
  • Self-employed individuals contribute both parts for a total of 11.37% of their monthly income.

The maximum monthly salary credit set by SSS is currently P20,000. This caps the contribution base amount. Also, SSS imposes a minimum and maximum amount payable per month. For employee contributions, this ranges from P240 to P800 based on 4% of the P6,000 to P20,000 salary credit limit.

The SSS contribution schedule and rates are reviewed periodically and subject to change. Historical increases have usually aligned with rises in cost of living.

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How to Check SSS Contributions

To ensure that the right SSS contributions are being made, members should periodically check their payment records and account status.

The easiest way to check contributions paid to date is to access your SSS account online through My.SSS portal. The service allows you to view your posting history including monthly contributions made and salary credits earned. You can also see if any payments are delinquent or below expected amounts.

If you notice any discrepancies, notify your employer immediately. Companies are required to remit the accurate employee and employer shares of SSS contributions each month.

How to Check SSS Contributions Online

To check SSS contributions online, simply follow these steps:

  • Visit the My.SSS website of the SSS online member portal.
  • If it’s your first time to use My.SSS, register an account with your SSS number, name, birthdate, and email address.
  • Log in to My.SSS with your registered username and password.
  • Go to the Contributions page under the Employer Services section.
  • Here you will find your SSS Posting Account. Review your posting records including payment dates, monthly salary credits, contribution amounts and any gaps.
  • Flag any discrepancies in your payment history. Inform your employer and SSS if any contributions appear short, delayed, or unpaid.

Checking your SSS contributions regularly online lets you proactively address any issues with payments. This helps ensure you get the full benefits you are entitled to from your SSS membership over time.

How to Calculate SSS Contributions

SSS contributions are computed based on a member’s monthly salary credit. Here is how to calculate the SSS contributions due:

  • Get your monthly salary credit. This is your basic monthly salary including 13th month pay and other fixed allowances. Bonuses and variable allowances are excluded.
  • Check the maximum and minimum monthly salary credit. For 2023, this is capped at P20,000 and has a floor of P6,000.
  • The employee contribution rate is 4% of the monthly salary credit. Get 4% of your salary credit to determine your required share per month.
  • The employer contribution rate is 7.37% of the monthly salary credit. Have your employer compute their share at 7.37% of your monthly credit.
  • Add the employee and employer contributions to get the total SSS contribution amount.
  • Ensure total stays within the minimum (P240) and maximum (P800) boundaries. Employee share cannot fall below P240 and combined share cannot exceed P800.
  • Deduct employee portion from payroll and remit employer share. Payments must be made no later than the 10th day of the following month.

Let’s take an example:

  • Monthly salary credit: P15,000
  • 4% of P15,000 = P600 (Employee share)
  • 7.37% of P15,000 = P1,105 (Employer share)
  • Total contribution: P600 + P1,105 = P1,705

This falls within allowable range, so the employee should deduct P600 per month for SSS and employer remits P1,105.

Calculating SSS contributions properly ensures full compliance with payment regulations. This safeguards your access to future SSS benefits.

Importance of Regular SSS Payments

Making prompt and regular SSS contributions throughout your working life as an employee in the Philippines is critical. Here are some key reasons why consistent SSS payments matter:

  • Eligibility for Benefits – You can only receive SSS coverage after 36 months of contributions are made. Maintaining payments ensures ongoing eligibility for future claims.
  • Benefit Amounts – SSS benefits paid out depend directly on total contributions plus length of membership. More contributions increase potential benefit amounts.
  • Interest Earnings – SSS funds left on deposit earn interest over time. Regular contributions let you accumulate more interest earnings.
  • Qualify for Loans – Accessing SSS salary, housing or emergency loans requires minimum contribution levels. Consistent payments help meet loan requirements.
  • Compliance – Following SSS rules prevents penalties. Delinquent payments incur fines and compromise your account status.
  • Retirement Pension – To qualify for retirement benefits, you need 120 monthly SSS payments. Timely contributions are key for the future.
  • Peace of Mind – When faced with unexpected events like illness, regular SSS payments provide protection when you need it most.

Where to pay the SSS Contribution?

There are several options to pay your SSS or Social Security System contributions in the Philippines:

  • Employer Deduction – Most employees have their SSS contributions automatically deducted from their payroll by their employer. This is the easiest way to keep payments up to date.
  • SSS Website – If you have a My.SSS online account, you can pay contributions directly on the SSS website using your credit card, debit card or digital wallet.
  • SSS Mobile App – Download the SSS mobile app on your smartphone to pay seamlessly via linked bank account.
  • Authorized Banks – Over 30 partner banks accept SSS contributions including BDO, Metrobank, BPI and PNB. Just present your SSS number.
  • Bayad Centers – These bill payment centers located across the country accept cash payments for SSS contributions. Find nearest location to you.
  • SSS Offices – You can pay directly at any SSS branch nationwide. Locate your closest office on the SSS website.

Paying at Bayad Center or authorized banks may have small admin fees of P10 to P30 on top of contribution amounts. Consider the most convenient and cost-efficient option for you. Keep your SSS payments up to date to remain qualified for benefits and coverage.

Final words

By making disciplined and prompt contributions every month, you ensure your SSS coverage remains intact. This provides a financial safety net in case of major life events down the road. Stay compliant and maximize your SSS membership benefits.