The Social Security System (SSS) has introduced a new Contribution Table, effective January 2025, as part of the Social Security Act of 2018. This update is designed to strengthen the system’s sustainability and provide better benefits for its members. Key changes include an increase in the contribution rate, a wider Monthly Salary Credit (MSC) range, and revised allocation policies.
Starting in January 2025, the contribution rate will rise to 15% of the MSC. The minimum MSC will be set at ₱5,000, while the maximum will increase to ₱35,000. This adjustment is intended to ensure that members receive sufficient support for retirement, disability, and other social security benefits. Contributions will be distributed across the following SSS programs:
- The Regular Social Security (SS) Program
- The Employees’ Compensation (EC) Program
- The Mandatory Provident Fund (MPF) Program
These changes apply to all member categories, including employees, employers, self-employed individuals, household workers, and voluntary members. For employees, the contribution will continue to be shared between employers and employees. However, self-employed and voluntary members will need to cover the full contribution on their own.
The revised contribution structure is part of the government’s goal to create a fair and inclusive social protection system. In this article, we will provide a detailed breakdown of the 2025 Contribution Table, explain its main components, and discuss how these changes affect different types of members.
SSS Contribution Table Changes 2025
The 2025 SSS contribution table introduces a 15% contribution rate, calculated based on a member’s Monthly Salary Credit (MSC). The MSC refers to the monthly salary or income level used to determine the contributions. Key updates in the 2025 table include:
- Minimum MSC: ₱5,000
- Maximum MSC: ₱35,000
For regular employees, the contributions are shared between the employer and the employee. However, self-employed and voluntary members are responsible for covering the entire 15% contribution on their own.
Additionally, for incomes exceeding ₱20,000, the excess contributions are directed to the Mandatory Provident Fund (MPF). This allocation helps boost retirement and disability benefits by building savings and generating investment returns over time.
Monthly Salary Range | MSC | Employer Contribution | Employee Contribution | EC Program (Employer) | Total Contribution |
---|---|---|---|---|---|
₱5,000 – ₱5,249.99 | ₱5,000 | ₱500.00 | ₱250.00 | ₱10.00 | ₱760.00 |
₱9,750 – ₱10,249.99 | ₱10,000 | ₱1,000.00 | ₱500.00 | ₱10.00 | ₱1,510.00 |
₱19,750 – ₱20,249.99 | ₱20,000 | ₱2,000.00 | ₱1,000.00 | ₱30.00 | ₱3,030.00 |
₱25,750 – ₱26,249.99 | ₱26,000 | ₱2,600.00 | ₱1,300.00 | ₱30.00 | ₱3,930.00 |
₱30,750 – ₱31,249.99 | ₱31,000 | ₱3,100.00 | ₱1,550.00 | ₱30.00 | ₱4,680.00 |
₱34,750 and above | ₱35,000 | ₱3,000.00 | ₱1,500.00 | ₱30.00 | ₱5,280.00 |
How Employers and Employees Split Contributions?
The employer bears the bulk of the contribution, covering two-thirds of the total amount, while the employee contributes the remaining third. This setup ensures equitable distribution of financial responsibility, making it manageable for employees while safeguarding their social security.
For example:
- At an MSC of ₱10,000, the employer contributes ₱1,000, while the employee contributes ₱500, making the total contribution ₱1,500.
- At the maximum MSC of ₱35,000, the employer contributes ₱4,000, and the employee contributes ₱1,250, resulting in a total of ₱5,250.
Social Security for Household Employers and Workers
Household employers, such as those employing domestic helpers or caregivers, are also required to follow the new SSS contribution schedule. The system emphasizes the employer’s responsibility, with household workers paying smaller shares.
MSC | Household Employer Share (₱) | Employee Share (₱) | Total Contribution (₱) |
---|---|---|---|
5,000 | 500 | 250 | 750 |
10,000 | 1,000 | 500 | 1,500 |
20,000 | 3,000 | 1,000 | 4,000 |
35,000 | 4,000 | 1,250 | 5,250 |
SSS Contributions for Self-Employed Workers Explained
Self-employed individuals must cover the full 15% contribution themselves, as they do not have an employer sharing the cost. While the contribution may seem high, it ensures self-employed individuals are not left without a safety net during unforeseen circumstances, such as illness or retirement.
Monthly Salary Range | MSC | SS Contribution | EC Contribution | Total Contribution |
---|---|---|---|---|
₱5,000 – ₱5,249.99 | ₱5,000 | ₱750.00 | ₱10.00 | ₱760.00 |
₱15,750 – ₱16,249.99 | ₱16,000 | ₱2,400.00 | ₱30.00 | ₱2,430.00 |
₱34,750 and above | ₱35,000 | ₱5,250.00 | ₱30.00 | ₱5,280.00 |
Self-employed individuals with an MSC above ₱20,000 contribute to the MPF Program, which offers additional retirement benefits.
How Non-Working Spouses & Voluntary Members Can Benefit from SSS?
Voluntary members and non-working spouses follow a similar structure to self-employed individuals but are exempt from the EC Program. This program ensures that non-working spouses can also enjoy financial security despite not being formally employed.
Monthly Salary Range | MSC | Total Contribution |
---|---|---|
₱5,000 – ₱5,249.99 | ₱5,000 | ₱750.00 |
₱15,750 – ₱16,249.99 | ₱16,000 | ₱2,400.00 |
₱34,750 and above | ₱35,000 | ₱5,250.00 |
How Your Contributions are Converted to Benefits?
The updated SSS contribution rates significantly affect how benefits are calculated. Members with higher Monthly Salary Credits (MSCs) contribute larger amounts, which directly result in greater benefits. For those with contributions exceeding ₱20,000, the additional amounts are allocated to the Mandatory Provident Fund (MPF). This ensures that members with higher incomes accumulate more savings, which can be used for future needs like retirement or disability support.
Examples of Benefits
- Retirement Benefits: Calculated based on the average MSC over the years and the total number of credited years of service. Higher contributions lead to higher monthly pensions upon retirement.
- Maternity Benefits: Female members who have made sufficient contributions before childbirth are eligible for financial assistance during their maternity period.
- Disability and Death Benefits: Provide financial support to members who face permanent disability or to their families in case of death, offering a safety net during difficult times.
What to Do If You’ve Paid in Advance?
Members who made advance payments under the previous MSC schedule (minimum ₱4,000) must adjust their contributions to comply with the new rates. This adjustment ensures that their contributions are properly credited and remain valid under the revised system.
Adjustments for Minimum MSC Payments
Members who prepaid at the old minimum MSC of ₱4,000 need to pay an additional ₱190 for each prepaid month. This is required to meet the new minimum MSC of ₱5,000.
Options for Higher MSC Payments
Members who prepaid for MSCs above ₱4,000 can either pay the additional required amount to retain their chosen MSC or allow the contributions to be credited at a lower MSC, based on the new table.
By addressing these adjustments promptly, members can ensure that their contributions are correctly posted, avoiding disruptions in their future benefits.