Basis of Monthly SSS Contribution

Updated May 18, 2019

What is the basis of an employee’s SSS monthly contribution?

Magkano dapat ang Monthly SSS Contribution ko as an employee?

Depende sa Gross Salary mo for the month.

Two items lang ang hindi kasali sa Gross Salary for SSS computation: 13th-month pay and Christmas bonus.

Ano ba ang Gross Salary?
Ang Gross Salary ay ang total salary mo for the month.

Wala pang na-deduct na tax o SSS, Pag-ibig and Philhealth contributions o HMO premiums.

Hindi naman daw sinabi sa SS Law na Gross Salary ang basis of SSS monthly contribution.
Yes, tama. Walang sinabing “gross salary” sa SS Law, pero gross salary rin ang pupuntahan ng sinabi ng SS Law, SSS Citizen’s Charter at SSS Newsletter.

Ito ang sinasabi ng Social Security Law (Republic Act No. 8282):

SEC. 18.  Employee’s Contribution.

(a)… the employer shall deduct and withhold from such employee’s monthly salary, wage, compensation or earnings, the employee’s contribution in an amount corresponding to his salary, wage, compensation or earnings during the month in accordance with the following schedule:  (schedule refers to the SSS Contribution Table)

 

Sa SSS Citizen’s Charter, sinabi na ang Compensation means “ALL actual remuneration for employment, including COLA, pati cash value ng remuneration na hindi ibinigay in cash.

Here’s a list of items included sa Compensation, according to the SSS Citizen’s Charter:

Compensation shall include the following:

  •  Salaries and wages
  •  Overtime Pay
  •  Bonuses (except Christmas Bonus)
  •  Payment for direct labor or indirect labor
  •  Maternity Leave Pay
  •  Sick Leave Pay
  •  Vacation Leave Pay
  •  Cost of Living Allowance (COLA)
  •  Emergency COLA
  •  Transportation Allowance
  •  Board and Lodging Allowance
  •  Cash Value of Living Expense
  •  Superintendence Pay
  •  Commission Expense
  •  Workers Compensation Benefit
  •  Tuition Fee and School Fee Benefits
  •  Cash value of any remuneration paid through any non-cash medium
  •  Commission Advances and Allowances
  •  Salaries Earned While on Board a Foreign Vessel
  •  Share in the Catch Project
  •  Other types of compensation paid as remuneration for employment

CompensationAll actual remuneration for employment, including the mandated cost of
living allowance, as well as the cash value of any remuneration paid in any medium other
than cash except that part of the remuneration received during the month in excess of the
maximum salary credit as provided under Section 18 of the SS Law.

 

Kung magtanong ka sa SSS officer, sasabihin sa iyo na ang monthly SSS contribution ay based on Gross Salary.

Yang list above, itinuturo sa mga Seminars conducted by SSS for company HR and accounting officers.

Ito rin ang sinabi sa SSS Newsletter, issued March 2018:


Per Circular No. 22-P (August 12, 2005),
all employers, in computing the contributions that are due the System will take into consideration and include as employee’s remuneration the following: salaries and wages, direct labor or indirect labor, superintendence, commission expense, overtime pay, maternity leave with pay, sick leave with pay, vacation leave with pay, cost of living allowance, workers compensation benefit, among others.

 

Anong items ang hindi kasali sa list?
Christmas bonus at 13th-Month Pay

Excluded ang 13th-month pay, as ordered by the DOLE, and as stated in the 13th-Month Pay Law.

Saan makikita na excluded ang 13th-Month Pay sa Actual Monthly Salary used as Basis for SSS monthly Contribution?

Makikita sa 2 guidelines:

1. Page 42 of the Handbook on Workers’ Statutory Monetary Benefits, 2016 edition, published by the Bureau of Working Conditions, Department of Labor and Employment (DOLE):
I. Non-inclusion in Regular Wage
The thirteenth-month pay is not part of the regular wage of employees for purposes of determining overtime and premium payments, fringe benefits, contributions to the State Insurance Fund, Social Security
System, National Health Insurance Program, and private retirement plans.

 

2. Section 6 of the Rules and Regulation Implementing Presidential Decree No. 851 or 13th-Month Pay Law:
Section 6. Special feature of benefit
The benefits granted under this issuance shall not be credited as part of the regular wage of the employees for purposes of determining overtime and premium pay, fringe benefits, as well as premium contributions to the State Insurance Fund, social security, medicare and private welfare and retirement plans.

 

Paano ko malaman kung magkano ang SSS contribution ko for the month?

Gagamit ka ng latest SSS Contribution Table

Sa table, makikita mo ang Range of Compensation at EE.
EE means EMPLOYEE contribution.

Tingnan mo lang kung nasaang range yong gross salary mo at tingnan mo yong katapat na EE.

Ilang beses dapat mag-deduct ang Employer ng SSS contribution sa isang month kung 15th and 30th ang payroll?

Puedeng one time or two times. Diskarte na ng Employer o yong accountant or HR, basta ultimately, masusunod yong total EE contribution sa SSS Contribution Table.

For some employers, sa 30th na nagde-deduct kasi by the 30th or 31st, alam na yong actual o correct gross salary for the month.

Yong ibang employers, dahil nahihirapan ang employee kapag malaki ang deduction every 30th or 31st, nagde-deduct every 15th and 30th. Sa 15th, estimate lang muna ang amount ng SSS deduction. Puedeng mag-estimate based sa one-half ng basic monthly salary. Then sa 30th, kasi alam na yong actual na total salary for the month, ico-compute na yong correct SSS contribution for the month, and then ide-deduct na lang yong nabawas noong 15th.

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