Monthly contribution to the Social Security System by both employee (4.5%) and employer (9.5% plus EC), based on the employee's salary bracket per the SSS contribution schedule.
The Social Security System (SSS) is the mandatory social insurance program for private sector employees in the Philippines. Both the employee and employer contribute monthly, with rates based on the employee's Monthly Salary Credit (MSC) — a standardized salary bracket system. As of 2023 and beyond under RA 11199, the contribution rate is 14% of MSC total: 4.5% from the employee, 9.5% from the employer, plus the Employees' Compensation (EC) fund contribution (₱10 to ₱30 depending on MSC).
The minimum MSC is ₱4,000 and the maximum is ₱30,000. Even if an employee earns ₱100,000 per month, SSS contributions are capped at the ₱30,000 MSC level. Contributions are remitted monthly, due on specific dates depending on the employer's PEN (Payment Enrollment Number) last digit.
In practice: Pedro earns ₱25,000 basic monthly salary at a restaurant in Pasig. His SSC MSC = ₱25,000. Employee share = 4.5% × ₱25,000 = ₱1,125 (deducted from his salary). Employer share = 9.5% × ₱25,000 = ₱2,375 plus EC ₱30. The restaurant remits total ₱3,530 to SSS monthly on Pedro's behalf.
Why it matters: SSS contributions are mandatory — failure to remit is a criminal offense under RA 11199, and the corporate officer responsible can be personally imprisoned. Many small businesses delay SSS payments during cash crunches, but the penalties (3% per month on unremitted amounts) compound quickly. Employees also suffer — uncredited contributions mean reduced future SSS benefits (sickness, maternity, disability, retirement, death).
SSS contribution rates have been increasing annually (a process legislated in RA 11199). Always verify the current rate table from the official SSS website, as rates changed in 2023 and continue to have scheduled increases.