How to Compute SSS Contributions in the Philippines

How to compute SSS contribution in the Philippines? Employers must know how much employer’s contribution (ER) they must pay to the Philippine Social Security System (SSS) for their employers. If you’re an employee, you might also ask how much employee’s contribution (EE) is deducted, withheld and remitted by your employer to the SSS from your salary. For self-employed persons, such as professionals, businessmen and entrepreneurs, their SSS contributions are paid entirely by themselves. This is different from the contributions made by employees, because employers contribute for the benefit of their employees. That is why employers SSS contributions form part of employees’ benefits expense incurred by employers.

 

How to determine SSS contributions

Determining how much employees contribution (EE) an employer should deduct from his employees salary and how much employers contribution (ER) he should contribute to the SSS is quite easy. We only need to refer to the New SSS Contribution Schedule issued by the Social Security System. Let’s assume the following as an example:

Example:
Mr. Santos is an employee working for Mr. Cruz, his employer. Mr. Santos earns a monthly salary equivalent to P14,000.

Questions and answers:

1. Question: How much Employees Contribution (EE) should Mr. Cruz deduct from Mr. Santos salary?

Answer: Php 466.70 (See schedule on the Total Contribution of EE in the P14,000 Monthly Salary Credit range [highlighted in red]).

2. Question: How much is the total Employers Contribution (ER) Mr. Cruz should remit to the SSS for Mr. Santos?

Answer: Php 999.30 (See schedule on the Total Contribution of ER in the P14,000 Monthly Salary Credit range [highlighted in red]).

3. Question: How much is the total SSS contribution that should be remitted to the SSS for Mr. Santos?

Answer: Php 1,466.00 (See schedule on the Total Contribution of ER + EE in the P14,000 Monthly Salary Credit range [highlighted in red]).

New SSS Contribution Schedule

New SSS Contribution Schedule

For Self-employed (SE) persons, Voluntary Members (VM) and Overseas Filipino Workers (OFW), since they don’t have employers, they pay their total SSS contributions alone. Their total contribution is determined by simply looking at the last column (SE/VM/OFW Total Contribution) of the schedule based on their monthly salary /earnings credit range. Thus, if you’re self-employed and you earn P14,000 a month, the total SSS contribution you should remit to the SSS amounts to P1,456.

 

SSS contributions as deductions for computing income tax

A common mistake made by employers or their accountants and bookkeepers is claiming the total (ER and EE) SSS contributions as expenses or deductions against their taxable income. Only the total employer’s contributions (ER) should be recorded as expenses (employees’ benefits) in the books of the employer. Accordingly, ER expenses are the only allowable deductions an employer should claim against his taxable income. This is because ERs are the only expenses actually incurred and paid by employers. Employees’ contributions (EEs) are actually paid by employees – these are deducted from their salaries.

 

How to determine the total contributions credited in your SSS records

It is very important that you should know how much is the total SSS contributions you have made and credited to your SSS account. This is to ensure that your contributions or the contributions made by your employers are actually and correctly reflected in your SSS records. To know you SSS records, you may inquire personally at the counter of the nearest SSS office in your area. If you have an SSS ID, you can use it in utilizing their kiosk. It’s an electronic machine like ATM that you can use to inquire your balances, such as your loan balances and total contributions made (this is what I do to check my records because it’s convenient and I don’t need to wait for hours for my name/number to be called at the counter). You may also try to visit and register at their website. But based on my experience, there is a problem in their web system. I have registered a few months ago, but I haven’t received any email confirming my registration. Thus, I still can’t log on to their website to check my records. I hope they could fix it as soon as possible. I also learned that there are several members who also experience this kind of problem. Good thing, I have my SSS ID.

Please don’t ask me how much is the total SSS contributions reflected in your records – I’m not an employee or an officer of the SSS. For more details and for your inquiries, you may visit or contact them at the following office address, telephone numbers, emal, website and facebook page.

Social Security System (SSS)
SSS Main Bldg, East Ave., Diliman, Q.C.
Trunkline: 920-6401
MRD email: member_relations@sss.gov.ph

To get information on your SSS data or membership, you can use their automated telephone service by calling the SSS IVRS at 917-7777 or call 920-6446 to 55 to speak to an SSS representative from 8:00 am to 5pm, Mondays to Fridays.
Website: www.sss.gov.ph
Facebook page: follow this link

Relevant law and resources:
Social Security Act of 1997, Republic Act No. 8282
Citizen’s Charter of the Social Security System

Victorino Abrugar is a retired CPA practitioner, a blogger, speaker, and an entrepreneur. He's the CEO of Optixor, Inc., a digital marketing company based in the Philippines. Follow him on Twitter at @viclogic.