Do you need help with calculating and paying your SSS contributions correctly? Are you wondering why you can’t make all payments online in our digital era?
Does it frustrate you that your contributions don’t immediately show up as expected?
These issues stem from the initial challenges of the new Social Security Law and the SSS system for instant contribution updates.
Adapting to significant changes can be challenging, but gaining a better understanding can improve how you manage your SSS contributions.
Here’s a detailed guide on how to calculate your SSS contribution using the latest SSS contribution tables.
Eligibility for Paying SSS Contributions: Who Qualifies?
OFWs, non-working partners, self-employed individuals, and workers up to 60 years old with an SSS number can begin or keep their coverage by paying their SSS contributions.
Members who contribute are qualified for social security benefits in situations like unemployment, retirement, death, disability, childbirth/miscarriage, and sickness.
Unemployed Filipinos can keep making contributions as voluntary members if they were previously insured as self-employed, employed, or OFW members with at least one month of contribution.
The SSS doesn’t permit initial contributions from first-time voluntary members unless they previously registered as self-employed, employed, or an OFW.
Voluntary members may only contribute after they have left their jobs to maintain their coverage.
Self-employed people in the informal sector, such as farmers and fishermen, may also make voluntary SSS contributions. Given their high vulnerability, they are allowed a flexible payment schedule.
They can pay their dues anytime within the twelve months before their deadline. For instance, if their payment is due in October 2022, they can pay from October 2021 to September 2022.
This allows them a longer grace period compared to the usual three-month window.
Why Should You Keep Up with Regular Contributions?
If you’re on a tight budget, the monthly SSS contribution might seem like an additional expense. However, its value becomes clear when you’re unemployed, retired, ill, in need of money, or injured.
Contributing to SSS is a way to save for the future. It’s wise to continue making these payments to your retirement fund while employed.
Moreover, your SSS benefits are determined by the number and amount of contributions you’ve made.
To qualify for an SSS benefit or loan, members must meet the following requirements:
1. Unemployment/Involuntary separation benefit: Needs 36 monthly contributions, including 12 in the 18 months before losing employment.
2. Disability benefit: Requires at least one monthly contribution before the disability semester.
3. Retirement benefit: Needs at least 120 monthly contributions before the retirement semester to qualify for a monthly pension.
4. Death benefit: Must have at least 36 monthly contributions before the semester of the member’s death to ensure a monthly pension for beneficiaries.
5. Funeral Benefit: Requires at least one contribution before the member’s death.
6. Salary loan: Needs six monthly contributions in the last 12 months and a total of at least 36 contributions.
7. Sickness/Maternity benefit: Requires three monthly contributions in the 12 months before the semester of miscarriage, childbirth, sickness, or injury.
How to Easily Compute Your SSS Contributions Each Month?
What members pay to the SSS depends on two factors:
Type of membership – Different members like Voluntary, self-employed, employed, kasambahay, OFWs, and non-working spouses have different payment amounts.
For kasambahays, employees, and some OFWs, their employers deduct contributions from their monthly wages and pay these to the SSS, along with the employer’s share.
Others have to pay their entire contribution on their own.
Monthly salary credit (MSC) – Defined by the Social Security Law as “the base for calculating contributions and benefits,” the MSC helps the SSS determine how much members need to contribute based on their monthly earnings.
The higher your monthly income, the higher your MSC and your contribution. You can find the MSC corresponding to your income level on the SSS contribution table.
Updated SSS Contribution Schedule Released
Before you figure out your payment, understand the recent changes to the SSS Contribution Schedule due to the Social Security Act of 2018.
Starting from January 2023, the contribution rate will increase to 14% of the MSC and will go up by 1% every two years until it hits 15% by 2025.
The minimum MSC has been raised from ₱3,000 in 2021 to ₱4,000 in 2023.
Also, the maximum MSC will rise from ₱25,000 in 2021 to ₱30,000 in 2023.
What does this mean for you? Your monthly payments will be higher. However, your future SSS benefits will increase as they are based on a higher MSC.
Ultimately, this increase in SSS contributions will extend the life of the SSS fund, enhancing your likelihood of receiving retirement benefits in the future.
