Following the rise in Social Security System (SSS) contribution rate to 15% this year, private sector employers will be shouldering 63% of the increase in monthly contributions of their workers who are earning below P5,250.
Mandated by the Social Security Act of 2018 (Republic Act No. 11199) and Social Security Commission Resolution No. 560-s.2024, the increase is aimed at securing the financial health of the state-run pension fund and strengthening its ability to provide future benefits.
According to SSS Circulars No. 2024-006 to 2024-010, the adjusted contribution rate will apply to all business employers and employees, household employers and workers (kasambahay), self-employed individuals, voluntary and non-working spouse members, and land-based Overseas Filipino Worker (OFW) members.
A comparison of the 2024 and 2025 contribution schedules shows that the SSS removed three compensation brackets for business employers and employees in the previous year: below P4,250, P4,250-P4,749.99 and P4,750-P5.249.99.
Beginning Jan. 1, 2025, the lowest bracket for the category will be below P5,250, for which the total monthly contribution to be paid per worker is P760 based on the new Monthly Salary Credit (MSC) of P5,000.
Of this amount, P510 will be shouldered by the employer and P250 by the employee.
For the employer, this represents an increase of P120, or about 31%, and comes up to P1,440 per year.
For the employee, the monthly wage will be deducted an additional P70 per month, or a hike of 39%, for a total of P840 per year.
For the rest of the compensation brackets covering P5,250 up to P34,750 above, the increase in monthly SSS contributions is about 7%, with the increase divided equally between employer and employee.
For example, for those in the MSC of P10,000, the monthly contribution increased from the previous P1,410 to P1,510, with the employer and employee coughing up an additional P50 each for the increase.
On the other hand, for those with compensation of P19,750 to above P34,750, the MSC is set at a maximum P20,000.
For those earning in excess of P20,000 a month, the regular SSS contribution for the employer is an even P2,000 plus P30 for the Employees’ Compensation (EC) Program, with an additional amount ranging from P50 to P1,500 going to the Mandatory Provident Fund (MPF) Program.
The MPF contributions will be credited to members’ individual accounts, with benefits calculated based on the total accumulated value, including contributions and net investment income, the SSS stated.
For self-employed members as well as voluntary and non-working spouse members, the minimum MSC has been raised from the previous P4,000 to P5,000.
As a result, the self-employed members’ minimum contribution will now be P760, up by P190 from P570 in 2024.
On the other hand, voluntary and non-working spouse members’ with MSC of P5,000 will also pay P750 monthly, a similar P190 increase from P560 previously.
A check of the schedules for Land-Based Overseas Filipino Workers (OFWs) show that the minimum MSC for their category remained the same at P8,000 but the monthly contribution is now P1,200, from the previous P1,120.
The minimum MSC for Household employees and kasambahays also stayed P1,000, with their contribution rising by P10 to P160 monthly.
Members who have paid contributions in advance for January 2025 and beyond must settle any underpayment to maintain their contributions at the new minimum MSC.