The Social Security System (SSS) is a cornerstone of employee social protection in the Philippines, providing maternity, sickness, disability, retirement, and death benefits. In this guide, we break down the statutory contribution structure enacted under Republic Act No. 11199 (Social Security Act of 2018) and SSS Circular No. 2024-006.
1. The 15% Contribution Rate Structure
Under RA 11199, the statutory contribution rate is 15.0% of the Monthly Salary Credit (MSC), split as follows:
- Employer Share: 10.0% of the MSC
- Employee Share: 5.0% of the MSC
- Employees' Compensation (EC): An additional employer-paid fund: ₱10.00 for MSC below ₱15,000, and ₱30.00 for MSC of ₱15,000 and above.
2. Understanding the Monthly Salary Credit (MSC)
SSS contributions do not apply to fractional wages directly. Instead, an employee's monthly basic salary is mapped into defined salary brackets in steps of ₱500.00:
- Minimum MSC Floor: ₱5,000.00 (For earnings below ₱5,250.00).
- Regular Social Security Ceiling: ₱20,000.00.
- Maximum MSC (including MPF / WISP): ₱35,000.00 (For earnings of ₱34,750.00 and above).
3. The Mandatory Provident Fund (WISP / MySSS Pension Booster)
For employees with an MSC exceeding ₱20,000.00, contributions for the excess amount up to ₱35,000.00 are automatically channeled into the Worker's Investment and Savings Program (WISP). WISP is a safe, government-guaranteed retirement fund that earns tax-free investment yields and supplements your regular monthly pension upon retirement.
4. Worked Examples
Example A: Minimum Wage / Entry Level (₱10,000 Salary)
- MSC: ₱10,000.00
- Employee Share: ₱10,000 × 5% = ₱500.00
- Employer Share: (₱10,000 × 10%) + ₱10.00 (EC) = ₱1,010.00
- Total Monthly Contribution: ₱1,510.00
Example B: Professional / Mid-Level (₱25,000 Salary)
- MSC: ₱25,000.00 (Regular MSC: ₱20,000, WISP MSC: ₱5,000)
- Employee Share: (₱20,000 × 5%) + (₱5,000 × 5%) = ₱1,000 + ₱250 = ₱1,250.00
- Employer Share: (₱20,000 × 10%) + (₱5,000 × 10%) + ₱30.00 (EC) = ₱2,000 + ₱500 + ₱30 = ₱2,530.00
- Total Monthly Contribution: ₱3,780.00
Example C: Maximum Ceiling (₱40,000 Salary)
- MSC: Capped at ₱35,000.00 (Regular MSC: ₱20,000, WISP MSC: ₱15,000)
- Employee Share: ₱1,000 (Regular) + ₱750 (WISP) = ₱1,750.00
- Employer Share: ₱2,000 (Regular) + ₱1,500 (WISP) + ₱30 (EC) = ₱3,530.00
- Total Monthly Contribution: ₱5,280.00