Every private-sector employee in the Philippines has an SSS contribution deducted each month, and every employer pays a larger share on top. The mechanics are simple once you understand one idea: the Monthly Salary Credit.
Who is covered
Coverage is compulsory for private-sector employees, including those on probation, casual, contractual, or project-based arrangements, from the first day of employment. Domestic workers, self-employed persons, and overseas Filipino workers are also covered under their own rules. For employers the practical rule is: if someone is on your payroll as an employee, you register them and remit for them.
Employees of the national government and its agencies are under GSIS, not SSS. Check the current SSS issuance for edge cases such as foreign nationals and employees on secondment.
The Monthly Salary Credit
SSS does not compute contributions on the exact salary. It maps the employee's monthly compensation into a bracket, and each bracket has a fixed Monthly Salary Credit (MSC). The contribution is then a percentage of the MSC, not of the salary.
- MSC runs from ₱5,000 to ₱35,000 in ₱500 steps.
- Compensation below ₱5,250 maps to the ₱5,000 MSC.
- Compensation of ₱34,750 and above maps to the ₱35,000 MSC, the ceiling.
- In between, each ₱500 band of salary (for example ₱24,750 to ₱25,249.99) maps to the MSC in the middle of the band (₱25,000).
Because of the ceiling, two employees earning ₱40,000 and ₱90,000 pay exactly the same SSS contribution.
The 15% and how it splits
Under the rates currently in effect, the total contribution is 15% of the MSC:
- Employee share: 5% of MSC, deducted from pay.
- Employer share: 10% of MSC, paid by the company on top of salary.
At the ₱35,000 ceiling this means a maximum employee deduction of ₱1,750 and a maximum employer share of ₱3,500 a month.
Employees' Compensation (EC)
The employer also pays the Employees' Compensation premium, which funds work-related injury and sickness benefits. It is a flat amount, entirely on the employer:
- ₱10 a month when the MSC is ₱14,500 or below.
- ₱30 a month when the MSC is above ₱14,500.
Nothing is deducted from the employee for EC.
Mandatory Provident Fund (WISP)
The part of the MSC above ₱20,000 is credited to the Mandatory Provident Fund, also called the Workers' Investment and Savings Program (WISP). The rate and the split are unchanged, 5% employee and 10% employer, so the employee sees a single SSS deduction on the payslip. What changes is where SSS records it: the contribution on the first ₱20,000 of MSC goes to the regular Social Security fund, and the contribution on the excess goes to a provident account in the employee's name.
Example: at a ₱30,000 MSC, ₱20,000 is under the regular program and ₱10,000 is under the MPF. The employee's total deduction is still ₱1,500 (5% of ₱30,000).
Full contribution table
Generated from the rules above. The "Total" column is what the employer remits for the employee: employee share plus employer share plus EC. The highlighted row is where EC steps from ₱10 to ₱30.
| Monthly compensation | MSC | Employee 5% | Employer 10% | EC | Total |
|---|
The MSC amounts above ₱20,000 are partly credited to the Mandatory Provident Fund; the peso amounts do not change. Check the current SSS circular for the official schedule and any additional columns it publishes.
Worked example
Employee with a ₱28,300 monthly basic salary
| Salary band | ₱28,250 to ₱28,749.99 |
| Monthly Salary Credit | ₱28,500 |
| Employee share (5% × ₱28,500) | ₱1,425.00 |
| Employer share (10% × ₱28,500) | ₱2,850.00 |
| EC (MSC above ₱14,500) | ₱30.00 |
| Total remitted for this employee | ₱4,305.00 |
Of the ₱28,500 MSC, ₱20,000 is under the regular program and ₱8,500 is under the Mandatory Provident Fund. The employee's payslip shows one SSS line: ₱1,425.00. On a semi-monthly payroll the deduction is usually split ₱712.50 per cutoff, or taken in full on one cutoff, depending on company policy.
Common payroll mistakes
- Computing 5% of the actual salary instead of the MSC. ₱28,300 × 5% is ₱1,415, but the correct deduction is ₱1,425 because the MSC is ₱28,500. Small per-employee gaps like this add up across a whole company and show up as under-remittance.
- Using last year's table. The SSS schedule has changed several times in recent years. A spreadsheet that was right in one year is silently wrong the next.
- Ignoring the EC step. EC is ₱10 up to a ₱14,500 MSC and ₱30 above it. Systems that hard-code one value under-remit for half the workforce.
- Wrong salary base for the bracket. Deciding what compensation counts toward the bracket (basic only, or basic plus regular allowances) needs one consistent rule aligned with the current SSS circular, not a per-payroll-clerk judgment call.
- Forgetting new hires and separations. Contributions apply from the first month of employment. Employees who leave mid-month still need the month's contribution handled per SSS rules.
- Splitting a monthly contribution across two cutoffs and losing centavos. Two halves that round separately can fail to add up to the monthly amount. The monthly total is what has to match the table.
Remittance timing
Contributions are remitted monthly per the SSS payment schedule, which is based on the employer number. Employers also submit the corresponding contribution collection list through SSS's online facilities. Deadlines and channels are set by circular, so check the current one for the exact dates that apply to your employer number, and note that late remittance carries penalties.
How AppDeep Payroll handles this
- The SSS schedule is master data, not code. When SSS issues a new circular, the table is updated once and every cutoff after that uses it.
- Each employee's MSC, employee share, employer share, EC, and MPF portion are computed on every cutoff from the same table, and the deduction schedule controls whether the monthly amount is taken on the first cutoff, the second, or split.
- The payroll summary exports employee and employer shares by employee for your remittance list, and the payslip shows the employee the MSC the deduction is based on.
- Before you switch, we run one full month (two cutoffs) side by side with your current system and reconcile every SSS line to the peso. On our first migration, 580 of 581 employees matched on the first parallel run; the one exception was a data-entry error in the old system.
Frequently asked questions
What is the SSS contribution rate?
Under the rates currently in effect, the total SSS contribution is 15% of the employee's Monthly Salary Credit: 5% is deducted from the employee and 10% is paid by the employer. The employer also pays the Employees' Compensation (EC) premium on top of that.
What is the maximum SSS contribution?
The Monthly Salary Credit is capped at ₱35,000, so the maximum employee share is ₱1,750 a month (5% of ₱35,000) and the maximum employer share is ₱3,500 plus ₱30 EC.
Is the SSS contribution based on basic salary or gross pay?
It is based on the employee's monthly compensation, which is mapped to a Monthly Salary Credit bracket. Most payroll systems use the monthly basic salary as the reference; check your company's practice against the current SSS circular for what compensation is included.
What is the Mandatory Provident Fund or WISP?
The portion of the Monthly Salary Credit above ₱20,000 is credited to the Mandatory Provident Fund, also called WISP. The contribution rate is the same 15% split 5% employee and 10% employer, so the employee sees one SSS deduction; SSS records the excess in a separate provident account.
Who pays the Employees' Compensation (EC) contribution?
The employer pays EC in full. It is ₱10 a month, or ₱30 when the Monthly Salary Credit is above ₱14,500. Nothing is deducted from the employee for EC.
When are SSS contributions remitted?
Employers remit per the SSS payment schedule, which is based on the last digit of the employer number. Check the current SSS circular for the exact dates and the online payment channels in effect.
Not tax or legal advice. This guide is general information based on the rules currently in effect as we understand them. Verify every figure against the current SSS issuance and consult your accountant or counsel for your situation.