The Social Security System (SSS) in the Philippines has two kinds of program coverage intended to properly classify their members’ employment status and amount of contribution.
The first category among the two is the Compulsory coverage which requires employed members to pay contribution including both the employers and employees, and even the self-employed person (business owners or freelancers).
In this category, members are allowed to pay directly or indirectly. If a member is an employer or an employee, they contribution is coursed through the company they are working for and not to be paid individually as it is one of the privileges given by the company to their employees for their efficiency.
While for the self-employed members, they are allowed to pay their contribution to SSS directly as long as they are earning an income of at least P 1,000 monthly.
On the other hand, the second type is the Voluntary coverage is specifically provided for separated members, unemployed spouse of an actively paying SSS member, and the Overseas Filipino Workers (OFWs).
For the members who fall in this category, they are also allowed to process their own contribution to SSS.
How much do members pay as contribution to the SSS?
Each member’s contribution is computed based on the amount of compensation or salary they receive.
For employed members, the current SSS contribution rate being used is 11% of their monthly salary credit not exceeding P16, 000. Moreover, this amount is shouldered by both the employer and the member. The employer pays at least 70% or 7.37% of the amount, while the remaining 3.63% is deducted on the employee’s salary.
In cases of self-employed and voluntary members, they pay 11% of their monthly salary credit, which is based on the amount of their monthly earnings that they had declared at the time of registration.
For the non-working spouse, their contribution is computed based on 50% of their employed spouse’s last posted monthly salary credit. However, the voluntary member’s spouse should have an MSC not lower than P1, 000.
And lastly, the OFWs’ contributions are based on the P5, 000 MSC.
Do members have a deadline in paying their monthly contributions?
The answer is yes. Each member should never forget to pay their due amount monthly to avoid any incurring penalty that can also be equivalent to a specific amount of money.
To guide you, here are the schedule of deadlines each member can look at:
Employee members usually don’t need to worry about deadlines as their employers are the ones who are responsible for sending your contributions to the SSS. However, they should take note that there are deadlines needed to be in accordance with the prescribed schedule of payment to each member.
The scheduled payment is identified through the 10th digit of the Employer's ID Number.
Self-employed and voluntary members also have the same deadline as the employed ones. The only thing they differ in is the frequency of a member’s contribution payments.
Consequently, self-employed or voluntary members have the privilege to choose whether to pay on a monthly or quarterly basis.
If a member chooses quarterly payment, he/she will have to pay an amount that covers three (3) consecutive calendar months ending on the last day of March, June, September and December.
Meanwhile, OFW members are granted a more special privilege as they are provided with a different deadline.
OFWs will be handing their payment of contributions for the months of January to December of a given year once a year; while their contributions for the months of October to December of a given year may also be paid on or before the 31st of January of the succeeding year.
What happens when a member fails to pay on the specific deadline?
Unfortunately, late payments can result to penalties and possible delays in the processing of the member’s benefits and loans.
The first step in paying their SSS voluntary contribution is by visiting the nearest facility.
The payment facilities that a voluntary member may pay at are:
SSS Main Office – Cashier
SSS Branch Tellering Counters
SSS-accredited Commercial Banks
SM Business Centers
CIS Bayad Centers
Meanwhile, for some members who are currently residing or working abroad, they may process their contributions through the following points:
PNB Overseas Payment System
Furthermore, if a member prefers, they may also opt for Auto-Debit Arrangement (ADA) for their SSS contributions by visiting their bank of account.
Afterwards, a member can pay their voluntary contribution by asking for the SS Form RS-5 or Contributions Payment Return and fill it with the necessary details required by SSS.
Note that voluntary members should take note to put a check mark on the box provided for Voluntary (Separated) Member to indicate their rightful category.