Following the passing of the SSS Rationalization Act, several changes were made for this year’s contributions as shown to the new (2019) SSS contribution table. SSS members and their employers will notice that they will now be contributing 12% from the current 11% monthly contribution.
The said changes to the contribution schedule took effect on April 1, 2019. The increase will gradually continue until it reaches 15 percent by 2025.
The new table of contributions has increased the highest monthly salary credit to P20,000 from the current P16,000. The P20,000 month salary credit is for those with compensation of P19,750 and above.
For the “Self-employed, Voluntary, Non-Working Spouse,” those with P2,000 monthly salary credit shall contribute P240 while those with the maximum monthly credit (P20,000) will contribute P2,400.
For the “Employed” members, their employers will shoulder 68% of their contributions. Only the remaining 32% will be from the employee. For example, for monthly credit of P2,000, the total contribution would be P250.
For the “Household Employers and Kasambahay,” the employers will shoulder the full monthly contribution of those kasambahay who receive 4,999 and below monthly compensation. For a monthly salary credit of P1,000, the monthly contribution to be paid by the employer would be P130.
Under the new law, it also requires overseas Filipino workers (OFWs) to become SSS members. They will be assured of social security protection as long as they are not over 60 years of age.
For OFWs, their minimum monthly salary credit is pegged at P8,000. The lowest monthly contribution is at P960.
These changes were made by SSS to ensure the security of its funds following the PHP 1,000 increase in the pension of its retired members as promised by President Duterte.
Employees and employers alike, take note of these changes which will take effect on your salary for the month of May.